Ron Burkle’s Americold Explores Sale or IPO, Sources Say

By Dana Mattioli

Americold, a big owner of temperature-controlled warehouses backed by investor Ron Burkle, is exploring a sale or IPO, according to people familiar with the matter.

The closely held real-estate investment trust could be valued at more than $3 billion, or even $4 billion, in a deal, the people said. Americold is working with bankers to sound out interested parties and is simultaneously considering a listing — a common approach when a private-equity firm is ready to begin exiting an investment. It isn’t clear who might buy the company and as always, there may be no deal.

Americold is owned by Mr. Burkle’s Yucaipa Cos., which agreed to buy about 20% of the company in 2004 and the rest four years later.

In 2010, the billionaire investor sought to raise $660 million in an initial public offering of Americold but backed away amid a broader bout of market weakness.

Based in Atlanta, Americold traces its roots to 1903, when it was called the Atlantic Ice & Coal Company. It offers warehousing, transportation and logistics services to food companies and owns and operates more than 165 temperature-controlled warehouses around the world. The company, which has about 11,000 employees, is structured as a real-estate investment trust, a type of vehicle that passes profits onto shareholders in a tax-efficient manner.

Yucaipa has invested in a range of companies since it was founded in 1986, including a number of grocers and other retailers.

There has been a flurry of merger deals lately among REITs, which can include apartment complexes, hotels or data centers, for example. Year-to-date, it ranks as the fourth-busiest sector, accounting for more than $110 billion in transactions, according to Dealogic.

Write to Dana Mattioli at dana.mattioli@wsj.com

Breaking the story

Dana Mattioli was first to report that Americold, owner of temperature-controlled warehouses backed by investor Ron Burkle, is exploring a sale or IPO. The warehouse owner could be valued at more than $3 billion, according to sources.

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